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2021 (6) TMI 1084 - HC - Income TaxDeduction u/s 80P - Single Judge dismissed the writ petition on the ground that the petitioner had an effective alternate remedy by way of an appeal before the first appellate authority under the IT Act - HELD THAT:- We find that this is a case where the assessing authority has not applied the law as laid down by the Supreme Court on an issue that has been the subject matter of litigation for a considerable period of time. The reversal by the Supreme Court was itself of a judgment rendered by a Full Bench of this Court, which, in turn, had taken note of conflicting views expressed by Division Benches of this Court. When the law is finally settled by the Supreme Court in a contentious issue such as the one presented in the instant case, the said law has necessarily to be applied by the assessing authorities under the IT Act who are bound by it. It cannot be the stand of the Department that an assessee, who is aggrieved by an assessment order passed ignoring the binding judgment of the Supreme Court, has nevertheless an alternate remedy by way of an appeal before the first appellate authority under the statute. An erroneous assessment occasioned by ignoring a binding judgment of the Supreme Court cannot be trivialized as an order against which an appellate remedy lies that would provide justice to an assessee. We, therefore, set aside the judgment of the learned Single Judge, and also quash Ext. P11 assessment order in relation to the writ petitioner/assessee, and direct the 1st respondent assessing authority to re-do the assessment of the appellant society for the asst. yr. 2018-19 under the IT Act afresh, after issuing notice to the appellant assessee and after hearing the assessee in the matter. We make it clear that we have not expressed any opinion on the merits of the matter and that all contentions on merits are left open to the assessee to canvass before the assessing authority at the time of hearing. The assessing authority shall endeavour to complete the assessment as directed taking note of the judgment of the Supreme Court in Mavilayi [2021 (1) TMI 488 - SUPREME COURT] within an outer time limit of three months from the date of receipt of a copy of this judgment. With the above direction, the writ appeal is disposed.
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